I like the Trump investing mentality, you lower your risk when it is not your money at risk.

Or 2) You are planning on paying the HELOC back in a short time frame using BRRRR, syndication, sale or other takeout. 

A bigger down payment can lower the amount of the principal and interest being paid, so that DSCR can be met more readily - but that might not make that rental more attractive to an investor who is looking to have as little into the property as possible.

Some 8 Cap buildings can generate high cash flow and high DSR while other will be lower DSR and less cash-flow. 

It has been under contract twice and then fallen through, with the listing price lowered once about six weeks ago.

Account Closed , Sounds like a good idea PROVIDED you can build them at the right price.First i would suggest you talk to Drafts man or Architect to figure out the $ cost per sqf in your area. more often then not building from the ground up is more expensive them buying existing building. and the RETURN ON COST including the land, will be much lower.

What that'll get you in the Cleveland area right now is a lower C-D class duplex or a lower C class single family home.

Every time I calculate cap rate using ACTUAL income and expense, it is always lower than the MLS listed cap rate.

You can afford to invest in fixer uppers or even negotiate a lower price since you can put a larger down-payment but that all depends on where you are investing. 

I can find it in SFR's in the lower rated school districts, otherwise it's tough.